On August 22, Friday, the stock market went up after Federal Reserve Chair Jerome Powell indicated that the central bank might have to start lowering interest rates in September.
The Dow Jones Industrial Average gained 1.89% to reach a new all-time high and close at a record level. The S&P 500 also went up by 1.52%. The tech-heavy Nasdaq Composite climbed 1.88%.
Megacap technology stocks surged after Powell’s remarks.
Powell said that the current economic situation and risks might mean the Fed needs to change its policy. He noted that the balance of risks is shifting between the Fed’s dual mandate of full employment and stable prices. Powell also noted big changes in tax, trade, and immigration policies.
After these comments, the chances of the Fed cutting interest rates by a quarter-point in September jumped to about 83%, according to the CME Group’s FedWatch tool. This was up from the 75% chance expected earlier in the week.
With this background in mind, let’s take a look at the 10 best stocks for 5 years for a long-term stock portfolio.
Stocks
Our Methodology
To compile our list of the 10 best stocks for 5 years for a long-term stock portfolio, we looked for “long-term stocks to buy” and “stocks to invest in for the next 5 years.” We reviewed various online resources and financial media reports to compile a list of more than 25 best long-term stocks. Next, we focused on the top 10 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q2 2025 database of 983 elite hedge funds. Finally, the 10 best stocks to buy for the next 5 years were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q2 2025.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Long-Term Stock Portfolio: 10 Best Stocks for 5 Years
10. Shopify Inc. (NASDAQ:SHOP)
Number of Hedge Fund Holders: 69
Shopify Inc. (NASDAQ:SHOP) is one of the best long-term stocks to buy for the next 5 years. On August 7, Benchmark increased its price target for Shopify Inc. (NASDAQ:SHOP) from $140 to $190 while keeping a Buy rating.
This decision to raise the price target came after Shopify Inc. (NASDAQ:SHOP) shared results for the second quarter of 2025.
Shopify Inc. (NASDAQ:SHOP) reported a 31% year-over-year growth in its Gross Merchandise Volume (GMV). According to Benchmark, this marked the company’s strongest growth in 3.5 years.
The company also reported faster GMV and revenue growth in North America, Europe, and Asia Pacific compared to the first quarter of 2025. Shopify Inc. (NASDAQ:SHOP) still has a lot of potential to grow its market share, especially in international markets.
Shopify Inc. (NASDAQ:SHOP) is a global commerce company that offers an all-in-one e-commerce platform to start, run, and grow a business.
9. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 71
Verizon Communications Inc. (NYSE:VZ) is one of the best long-term stocks to buy for the next 5 years. On August 20, Verizon Communications Inc. (NYSE:VZ) announced new plans to offer prepaid customers expanded global connectivity.
Two key brands in Verizon Communications Inc.’s (NYSE:VZ) Value portfolio, Simple Mobile and Total Wireless, will start offering enhanced plans and expanded roaming services to prepaid customers on August 28.
According to the report by Verizon Communications Inc. (NYSE:VZ), the new plans will include unlimited calling and texting to over 200 countries. This makes these plans great options for customers who travel internationally.
Verizon Communications Inc. (NYSE:VZ) noted that besides traditional destinations like Mexico, Canada, and the UK, the Asia Pacific region is attracting American travelers at unprecedented levels. These plans will help meet the rising demand for international connectivity.
Both Simple Mobile and Total Wireless serve different customer needs while utilizing Verizon Communications Inc.’s (NYSE:VZ) strong network to offer international features that expand offerings for prepaid customers.
Verizon Communications Inc. (NYSE:VZ) is an American technology and telecommunications company that provides reliable network connectivity, entertainment, and security solutions.
